The shares are being sold under Brigham's existing shelf registration statement on Form S-3, which was declared effective by the Commission on June 30, 2004. Net proceeds from this offering, after underwriting discounts and other expenses, will be approximately $85.6 million. Brigham intends to use $57.3 million of the net proceeds from this offering to fund the repurchase of 5,000,000 shares of its common stock from certain of its stockholders. Brigham will use the remaining net proceeds from this offering to repay outstanding indebtedness under its senior credit facility and, thereafter, use a portion of such available credit to fund its operations, including its drilling projects.
Raymond James and RBC Capital Markets acted as co-lead managers for the offering and Friedman Billings Ramsey, Johnson Rice & Company L.L.C. and Dahlman Rose & Company acted as co-managers. Brigham has granted the underwriters a 30-day option to purchase up to an additional 1,125,000 shares to cover over-allotments, if any. Brigham will use the net proceeds from any exercise of the underwriters' over-allotment option to repurchase additional shares of its common stock from certain of its stockholders at a price equal to the net proceeds that it will receive.
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